The Research About The Convergence Between Chinese Accounting Standards And International Financial Report Standards

It is globally acknowledged that accounting is a business language between companies in a country and companies coming from different countries. With the process of global economic integration accelerating, the international flow of capital makes countries began to focus on the international accounting standards, which objectively requires the accounting standards of different countries to achieve convergence. Due to the International Accounting Standards Board developing the international accounting standards, International Accounting Standards is adopted by many countries and regions. For instance, the European Union has adopted the International Accounting Standards; Japan restructurs the accounting standards setting bodies, and formulates Accounting Standard of Japan in accordance with the International Accounting Standards; Driven by the real interests, the Financial Accounting Standards Board has fully involved in the work of International Accounting Standards Board.In order to meet the reform and opening up and the needs of the development of global economic integration, the Ministry of Finance has issued 6 batches of accounting standards for a total of 22 draft in 2005, also comprehensively comb, adjusting and revising the existing issued during the period of 1997 to 2001, 16 specific accounting standards, finally in early 2006 to build up a set of accounting standards for enterprises to improve system. From January 1st 2007, listed companies in China implement new accounting standards, and other enterprises being encouraged to execute, which basically achieves the convergence between Chinese Accounting Standards and the International Accounting Standards. With the breaking-out of subprime crisis, as the world’s largest developing country and emerging market economies, China released the “China accounting standards for enterprises with international financial reporting standards for full convergence road map” in April 2010, showing China’s attitude to the international convergence of accounting standards.Under the background of economic globalization, the opportunity of economic communication and cooperation between countries is growing. As a language of world economy, accounting is not only for a country’s domestic enterprises, but for the business enterprises of different countries. Also, it is a special bridge between the domestic market and international market. In order to understand the international convergence of accounting standards, the main content of this paper is as follows: Chapter 1 is the introduction part, mainly elaborates the research background and significance of this article, literature review, research contents and methods; Chapter 2, based on the perspective of new economic system and game theory, explores the reason and the essence of the international convergence of accounting standards in China. Chapter 3, this chapter firstly combs the mode and path to the international convergence of accounting standards of major countries and regions, reviews the change process of Chinese Accounting Standards, finallu analyses the Chinese Accounting Standards to the international convergence of accounting standards mode; Chapter 4 mainly analyses that how the international convergence of accounting standards influences Chinese Accounting Standards; Finally, in the chapter 5, based on the analysis of the causes of China’s international convergence of accounting standards, route choice and effect of research, this article will present situation the implementation of accounting standards in China, relevant Suggestions for accounting reform in China.